Rules and Run: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Create the page. Sources: linked pages.) |
||
| Line 1: | Line 1: | ||
''Banking''. | |||
A run on a bank or other financial institution is a situation where a large number of depositors withdraw their funds at the same time. | |||
A run will very quickly threaten the liquidity of the bank, and ultimately its survival. | |||
Runs can be self-perpetuating once they have begun, as the run itself causes further loss of confidence in the institution. | |||
==See also== | |||
== See also == | *[[Bank]] | ||
*[[Liquidity]] | |||
* [[ | *[[Liquidity fee]] | ||
* [[ | *[[Redemption gate]] | ||
* [[ | |||
* [[ | |||
Revision as of 07:46, 19 June 2016
Banking.
A run on a bank or other financial institution is a situation where a large number of depositors withdraw their funds at the same time.
A run will very quickly threaten the liquidity of the bank, and ultimately its survival.
Runs can be self-perpetuating once they have begun, as the run itself causes further loss of confidence in the institution.
